BASSETERRE, St. Kitts - THE Government has confirmed a second VAT Reduced Day for the month of December, which is expected to spur shopping and further boost economic activity during the busy Christmas period.
To go along with the December 18 day announced earlier, the Government, following further consultation with the Chamber of Industry and Commerce, has announced December 19 as the second date.
The announcement was made by Prime Minister Dr. Timothy Harris last evening (Nov. 10) during the Government’s ‘Leadership Matters’ programme.
“The Government, based on representation and consultation with the Chamber on Monday [Nov. 9], that we would extend VAT day which was originally carded for Friday, 18th December by another day to Saturday, December 19th.”
According to Dr. Harris, that is in hope of stimulating economic activity that would assist small businesses in the Federation.
In addition to the spurring of economic activity, Dr. Harris suggested that it is being done to minimise the large crowds that are normally gathered at business establishments during the day.
The Government has approved the usual concessions that come with the VAT-rated day in December, including duty-free concessions.
“For the period December 1 to 31, gift packages of foodstuff up to 400 pounds in weight will be allowed free of duty and taxes, and travelers and non-commercial importers will receive a duty-free allowance of EC$540 or US$200 off the Cost, insurance and Freight (CIF) value of goods,” a statement from the Office of the Prime Minister said.
Under the VAT Rate Days, the percentage of Value Added Tax will be reduced from 17 percent to five percent, while persons making purchases of motor vehicles will have to pay the full tax rate on any amount over $50,000.
